Rules and Guides

The 900-Number Rule requires disclosures about the cost of telephone-based entertainment or information services -- known as "audiotext" services -- that consumers access by dialing a 900 number. These disclosures must be made in the advertising of any 900-number audiotext service, and also in a free "preamble" message included at the beginning of any audiotext program.

The Fred Meyer Guides explain to manufacturers and wholesalers how they can provide advertising and promotional allowances and services to retailers without price discrimination and on “proportionally equal terms.”

The Advertising of Warranties and Guarantees Guides help advertisers avoid unfair or deceptive practices in the advertising of warranties and guarantees. The Guides provide examples of disclosures sufficient to convey to consumers the details of the warranty coverage and the meanings of various terms advertised in connection to the warranty.

The Fuel Rating Rule requires that refiners, importers, and producers of certain automotive fuels determine the fuel ratings before transferring the fuels to a distributor or retailer. For gasoline, the fuel rating is the octane rating. For alternative fuels, other than biodiesel, the rating is the minimum percentage of the principal component of the fuel. For biodiesel fuels, it is the percentage of biodiesel or biomass-based diesel in the fuel. The Rule also requires retailers to post the fuel rating on their pumps.

The Business Opportunity Rule requires business opportunity sellers to give prospective buyers specific information to help them evaluate a business opportunity, thus ensuring that the prospective purchasers have the information they need in order to assess the risks of buying a work-at-home program or any other business opportunity.

The CAN-SPAM Act requires the Commission to issue regulations “defining the relevant criteria to facilitate the determination of the primary purpose of an electronic mail message.” The CAN-SPAM Act applies almost exclusively to “commercial electronic mail messages”.

COPPA imposes certain requirements on operators of websites or online services directed to children under 13 years of age, and on operators of other websites or online services that have actual knowledge that they are collecting personal information online from a child under 13 years of age.

The Contact Lens Rule contains two key requirements. The first requirement is that contact lens prescribers (i.e., optometrists and ophthalmologists) must provide patients with a copy of their contact lens prescriptions at the completion of a contact lens fitting. The second requirement is that a contact lens seller cannot provide contact lenses to its customer unless the seller either obtains a copy of the prescription or verifies the prescription information with the prescriber through procedures set forth in the Rule.

The Cooling Off Rule provides that it is unfair and deceptive for sellers engaged in “door-to-door” sales valued at more than $25 to fail to provide consumers with disclosures regarding their right to cancel the sales contract within three business days of the transaction.

This Rule requires businesses and individuals that maintain or otherwise possess consumer reports and records for a business purpose to take appropriate measures to dispose of sensitive information derived from such consumer reports and records.

The Eyeglass Rule requires that optometrists and ophthalmologists provide patients a copy of their prescription after the completion of an eye examination without extra cost. In addition, the Rule prohibits optometrists and ophthalmologists from conditioning the availability of an examination on a requirement that patients agree to purchase any ophthalmic goods.

The Fair Packaging and Labeling Act (FPLA or Act), enacted in 1967, directs the Federal Trade Commission and the Food and Drug Administration to issue regulations requiring that all "consumer commodities" be labeled to disclose net contents, identity of commodity, and name and place of business of the product's manufacturer, packer, or distributor.

The regulations require financial institutions to provide particular notices and to comply with certain limitations on disclosure of nonpublic personal information. A financial institution must provide a notice of its privacy policies and practices with respect to both affiliated and nonaffiliated third parties, and allow the consumer to opt out of the disclosure of the consumer’s nonpublic personal information to a nonaffiliated third party if the disclosure is outside of the exceptions.

The Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment. The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees.

The Funeral Rule requires providers of funeral goods and services to give consumers itemized lists of funeral goods and services that not only state price and descriptions, but also contain specific disclosures. The "General Price List" (GPL) must list all prices for funeral goods and services offered by the funeral provider, although separate price lists may be developed for caskets and outer burial containers. The GPL must contain four disclosures:

The offer of "Free" merchandise or service is a promotional device frequently used to attract customers. When making "Free" or similar offers all of the terms and conditions upon which one can receive and retain the “Free” item should be set forth clearly and conspicuously at the outset of the offer so as to leave no reasonable probability that the terms of the offer might be misunderstood.

The Rule requires vendors of personal health records and related entities to notify consumers following a breach involving unsecured information. In addition, if a service provider to one of these entities has a breach, it must notify the entity, which in turn must notify consumers. The Final Rule also specifies the timing, method, and content of notification, and in the case of certain breaches involving 500 or more people, requires notice to the media.

The Hobby Protection Act, passed by Congress in 1973, covers imitation political items (e.g., buttons, posters, stickers, etc.), as well as imitation numismatic items (e.g., various coins, tokens, paper money, commemorative medals) that are required to be marked with certain identifying information in an effort to flag them as imitations. The FTC’s Rule establishes the size of the required disclosures, their location, and the manner in which items may be marked.

The Preservation of Consumers’ Claims and Defenses [Holder in Due Course Rule], formally known as the "Trade Regulation Rule Concerning Preservation of Consumers' Claims and Defenses," protects consumers when merchants sell a consumer's credit contracts to other lenders. Specifically, it preserves consumers' right to assert the same legal claims and defenses against anyone who purchases the credit contract, as they would have against the seller who originally provided the credit.

The Leather Guides address misrepresentations about the composition and characteristics of certain leather and imitation leather products, and state that disclosure of non-leather content should be made for material that appears to be, but is not, leather.

The Rule, issued in 1975, requires sellers who solicit buyers to order merchandise through the mail, via the Internet, or by phone to have a reasonable basis to expect that the sellers can ship within the advertised time frame, or, if no time frame is specified, within 30 days. The Rule also requires that, when a seller cannot ship within the promised time, the seller must obtain the buyer’s consent to a delay in shipping or refund payment for the unshipped merchandise.

The Rule requires advertisers to base any representation of the screen size on the horizontal dimension of the actual, viewable area, unless they disclose the alternative method of measurement clearly and conspicuously in close proximity to the size designation.

The Rule would prohibit anyone from engaging in fraud or deceit in wholesale petroleum markets, or misleading any person by omitting important information from statements that might distort petroleum markets because of the omission.

The R-value Rule (formally, the “Trade Regulation Rule Concerning the Labeling and Advertising of Home Insulation”) requires home insulation manufacturers, professional installers, new home sellers, and retailers to provide R-value information, based on the results of standard tests, to help inform consumers. The R-value rates a product’s ability to restrict heat flow and thus reduce energy costs. The higher the R-value, the greater the insulating power.

The Guides prohibit misrepresentations that a part is new or about the condition, extent of previous use, reconstruction, or repair of a part. Previously used parts must be clearly and conspicuously identified as such in advertising and packaging, and, if the part appears new, on the part itself.

The Unavailability Rule prohibits food retailers from advertising products at a stated price unless the products are in stock and available during the effective period of the advertisement, or the ad discloses that supplies are limited or available only at some outlets. It is not a violation if the retailer meets other conditions, such as offering a “raincheck” for the advertised products, or a comparable product at the advertised price.

The Fur Rules help consumers make informed buying decisions by requiring fur manufacturers and retailers to label fur products with certain information, such as the animal’s name, the name of the manufacturer, and the garment’s country of origin.

The Safeguards Rule requires financial institutions under FTC jurisdiction to have measures in place to keep customer information secure. In addition to developing their own safeguards, companies covered by the Rule are responsible for taking steps to ensure that their affiliates and service providers safeguard customer information in their care.

The Telemarketing Sales Rule, which requires telemarketers to make specific disclosures of material information; prohibits misrepresentations; sets limits on the times telemarketers may call consumers; prohibits calls to a consumer who has asked not to be called again; and sets payment restrictions for the sale of certain goods and services.

The Textile Fiber Rule requires that certain textiles sold in the United States carry labels disclosing the generic names and percentages by weight of the constituent fibers in the product, the manufacturer or marketer name, and the country where the product was processed or manufactured.

The Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution Act of 1992 (the “900-Number Rule,” or the “Pay-Per Call Rule”) was adopted by the Commission pursuant to the requirements of the Telephone Disclosure and Dispute Resolution Act of 1992. The Pay-Per-Call Rule, which became effective on November 1, 1993, covers the advertising and operation of pay-per-call services, as well as billing and collection procedures for those services.

Under these plans, sellers ship merchandise such as books, compact discs or tapes automatically to their subscribers, and bill them for the merchandise, if they do not expressly reject the merchandise within a prescribed time.

The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985. It requires car dealers to display a window sticker, known as a Buyers Guide, on the used cars they offer for sale. The Buyers Guide discloses whether the dealer offers a warranty and, if so, its terms and conditions, including the duration of the coverage, the percentage of total repair costs the dealer will pay, and which vehicle systems the warranty covers.

The Wool Products Labeling Rules require labels on wool products disclosing the manufacturer's or marketer's name, the country where the product was processed or manufactured, and information about the fiber content.